Thursday, January 31, 2008

Homes for sale through online auctions are becoming the next big thing. More people everyday are becoming comfortable buying things online and giants such as eBay are advancing the idea of online auctions.

In the current market, real estate agents and homeowners are looking for other solutions to get properties noticed and sold faster. An online auction is a great option.

Tuesday, January 29, 2008

If you have a house for sale right now, one of the biggest challanges is getting noticed. There are so many other houses for sale you need to do something differently to stand out.

While there are several strategies you can try, I think an online auction is one of the best. It will give you the opportunity to focus your marketing for a 2-3 week period, advertise a low starting bid and get potential buyers into your house. Technology has made auctions easier and more affordable than ever before and sellers and buyers both benefit.

Saturday, January 26, 2008

As lenders become more desperate to avoid the growing number of foreclosures, I see another good use of auctions.

Typically a homeowner facing foreclosure contracts with a real estate agent to sell their home. If the homeowner has equity, they have a better chance to sell fast by giving a discount.

However, if they don't have equity they are forced to try and sell their house at or above market value so they can pay closing and agent fees. This leaves them in a tough situation which usually ends in foreclosure.

Fortunately, some lenders will consider a "short sale". A "short sale" is when the lender agrees to take less than what is owed so they don't have to go through the foreclosure process and take the house back. Lenders do this because they do not want to own property.

If a lender is willing to consider a "short sale", it would be a great use of an auction. You can market the property through an auction for 2-3 weeks and make the high bid subject to lenders final approval. Then you can take the high bid and present it as an offer to the lender. When you present it you would also explain how you marketed the property. You could provide stats such as number of people who visited the property, number of bids, number of people bidding, etc. I think most lenders would seriously consider accepting an offer presented in this way.

Friday, January 25, 2008

In most areas of the country, it’s a great time to be a buyer. There are lots of properties to choose from and lots of great deals available. But what if you need to sell?

Homeowners and real estate agents are struggling to get their properties noticed and sold. It’s not surprising that now more than ever, sellers are turning to other creative strategies to market their properties. One such creative strategy is an online auction.

While live auctions have been successful for centuries, the rapid growth of online auctions is relatively new. This recent growth is the result of a slowing real estate market, advancing technology and our acceptance of buying online.

Online auctions are becoming an easier and inexpensive alternative. They still require preparation, marketing and effort, but a growing number of online auction sites provide additional tools and resources to make the process easier.

Here are the basics of how an online auction works. The homeowner or listing agent gathers all the property details and takes pictures just as they would for any other listing. They select the online auction system they will use, the dates of their auction (usually 2-3 weeks), and the terms of their auction. They plan their marketing, decide on their hidden reserve (minimum price) and determine their starting bid. When everything is in place they create and activate their online auction, do some marketing, open houses and then watch the bids roll in.

When the auction ends, the highest bidder who has met or exceeded the reserve price is the winner. One thing to keep in mind is that an online auction is not binding. Therefore, it is important that the seller, buyer and agents (if any) get together shortly after it ends to sign the paperwork and collect escrow monies.

That’s all there is to it. It definitely requires effort and the right pricing in order to be successful, but it’s a great option to have when you need to sell quickly.

About Tom Wood

I'm a real estate broker & online real estate auction expert in St. Louis, MO. I'm also the co-founder of Real Estate Auction Systems which is an online real estate auction system & service which we sell to real estate agents and auctioneers.
We have an Enterprise version of our auction system for auctioneers, Realtors and anyone else who wants their own private branded online real estate auction system. For more details on our Enterprise version visit our info and demo site